Developments in the Trade War - er, engagement

China said Thursday it plans to raise import duties on some American products if Washington doesn't abide by a World Trade Organization ruling that U.S. tariffs on steel are illegal.

China had also summoned the U.S. ambassador a day earlier to say it was "shocked at and expresses dissatisfaction with" new U.S. quotas on Chinese textiles. Beijing insists the textile trade restrictions also violate WTO rules.

Ma called on the United States to lift its steel tariffs, imposed in March 2002 to protect U.S. steel manufacturers but declared unlawful by the WTO earlier this month.

"If the United States did not observe the WTO ruling, China would raise the tariffs of some U.S. products and plans to do so were under discussion," the Xinhua News Agency reported, citing Ma.

The agency's Web site, Xinhuanet, reported the same thing with slightly stronger language, saying China "is going to raise tariffs on some U.S. imports, and plans are being studied." article

What a surprise...coming as it does after U.S. announces trade restrictions on Chinese textiles.

A trade delegation last week signed deals to purchase U.S. automobiles, jet engines and commercial aircraft worth more than $6 billion.

And wasn't that smart of the U.S. to wait till after the signature was on the line before announcing the textile restrictions?

Of course, we can't be blamed. It's just not fair that we buy so much more from them than they buy from us. They need to turn loose of some of that money.

Hey, I wonder how it would work out if the whole world went on the barter system. No money exchanging hands. Only goods and services. There must be something Halliburton could do with ten billion plastic American flags.

Don't forget to have your Christmas shopping done early. EU sanctions go into place December 20.

....but hey, do what you want....you will anyway.